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Quizzes > High School Quizzes > Mathematics

Financial Algebra Chapter 3 Practice Quiz

Master Chapter 2 test answers and exam concepts

Difficulty: Moderate
Grade: Grade 9
Study OutcomesCheat Sheet
Paper art illustrating a trivia quiz for high school students on Financial Algebra concepts

In the simple interest formula I = P * r * t, which variable represents the interest rate?
P
I
t
r
In the simple interest formula, r is used to denote the interest rate, which determines the proportion of the principal that is paid as interest. The other variables represent the principal (P), the interest (I), and the time (t).
If a ticket price is given by the equation P = 2.50x + 5, where x is the number of tickets, what does the constant 5 represent?
Price per ticket
Fixed base fee
Variable fee
Total price
The constant in a linear equation represents a fixed amount added regardless of the variable part. Here, the number 5 is the fixed base fee in the cost structure.
Solve for x in the equation 3x - 9 = 0.
x = 0
x = 9
x = -3
x = 3
Adding 9 to both sides of the equation gives 3x = 9, and dividing both sides by 3 yields x = 3. This is a straightforward linear equation.
In a linear cost function, what does the slope most commonly represent?
Total cost
Initial fixed cost
Change in cost per additional unit
Discount rate
The slope in a linear equation indicates the rate at which the cost increases with each additional unit. It represents the variable cost associated with each extra unit produced or purchased.
Which linear equation correctly represents a pricing model of $2 per item plus a fixed fee of $3?
C(x) = 2x + 3
C(x) = 2 + 3x
C(x) = 3x - 2
C(x) = 3x + 2
The model separates the fixed fee and the variable cost per item. Here, 2x represents the cost per item and 3 is the fixed fee, making C(x) = 2x + 3 the correct representation.
If a bank account earns simple interest at 4% per year, what total interest is earned on a $500 deposit after 3 years?
$24
$100
$40
$60
Simple interest is calculated as Principal � - Rate � - Time. Here, 500 � - 0.04 � - 3 equals $60 in interest.
Solve for x: 5(x - 2) = 20.
x = 8
x = 6
x = 2
x = 4
Dividing both sides by 5 gives x - 2 = 4, and adding 2 to both sides yields x = 6. This is a basic exercise in solving linear equations.
The function C(x) = 15 + 3x represents total cost for x items. What is the cost for 7 items?
$30
$35
$42
$36
By substituting x = 7 into the equation, we get C(7) = 15 + 3� - 7 = 15 + 21, which equals $36. This demonstrates how to use a function to compute a cost.
Which equation properly represents a phone company charging a $20 monthly fee plus $0.10 per minute of call time?
C(m) = 20 + 0.10m
C(m) = 20 - 0.10m
C(m) = 0.10 + 20m
C(m) = 20m + 0.10
The correct model adds a fixed fee of $20 to a variable cost of $0.10 per minute. This is accurately expressed as C(m) = 20 + 0.10m.
Find the value of y when 2y + 4 = 20.
10
12
8
6
Subtracting 4 from both sides yields 2y = 16, so dividing by 2 gives y = 8. This is a simple demonstration of solving a linear equation.
A car rental company charges a fixed fee plus an hourly rate. If 3 hours cost $39 and 5 hours cost $55, what is the hourly rate?
$8
$9
$6
$10
Subtracting the cost equations for 3 and 5 hours eliminates the fixed fee, leaving 2r = $16, so the hourly rate r is $8. This method effectively isolates the variable rate.
Solve for x: 7x + 5 = 2x + 30.
25
6
4
5
Subtract 2x from both sides to obtain 5x + 5 = 30, then subtract 5 from get 5x = 25 and divide by 5 to solve for x = 5. This is a clear application of basic algebraic manipulation.
If a 10% discount is applied to an item originally costing $50, what is the sale price?
$50
$40
$45
$55
A 10% discount reduces the price by $5 (which is 10% of $50), resulting in a sale price of $45. This demonstrates the concept of applying percentage deductions.
If the revenue function is R(x) = 70x and the cost function is C(x) = 20x + 100, what is the break-even quantity?
5
4
2
3
At the break-even point, revenue equals cost. Setting 70x equal to 20x + 100 leads to 50x = 100, so x = 2 units must be sold to break even.
After a 15% price increase followed by a 15% discount, is the final price equal to the original price?
No, the final price is higher than the original
Yes, it is the same
It cannot be determined
No, the final price is lower than the original
Applying a 15% increase raises the price, but a 15% discount on the higher price does not return it to the original amount. In fact, the final price is approximately 97.75% of the original, making it lower.
Solve for x: (3/4)(2x - 8) + 5 = (1/2)(x + 6) + 3.
8
13
7
5
First, distribute and simplify both sides of the equation to isolate the variable x. Working through the algebra, the solution is found to be x = 7.
An investment of $1000 is compounded annually at a rate of 5% for 3 years. What is the approximate amount in the account?
Approximately $1158
Approximately $1050
Approximately $1200
Approximately $1100
Using the compound interest formula A = P(1 + r)^n, we calculate A = 1000 � - (1.05)^3 ≈ 1000 � - 1.15763 ≈ $1158. This demonstrates how compound interest accumulates over time.
Using the present value of an annuity formula PV = P * ((1 - (1 + r)^(-n)) / r), if PV = $950, P = $100, and n = 10, what is the approximate annual interest rate r?
2%
4%
1%
3%
Substituting the given values into the annuity formula leads to the equation (1 - (1 + r)^(-10)) / r = 9.5. Testing r = 0.01 (or 1%) satisfies the equation, indicating an approximate annual interest rate of 1%.
If the equation r(t) = 500(1 + 0.06t) represents an investment's value over time, what is the increase in value after 4 years?
$100
$500
$620
$120
Plugging t = 4 into the equation gives r(4) = 500(1 + 0.24) = 500 � - 1.24 = $620. The increase in value is 620 - 500 = $120, representing the growth over 4 years.
A company's profit function is given by P(x) = -2x² + 36x - 100, where x represents the number of units produced. At what production level is maximum profit achieved?
10
18
8
9
For a quadratic function, the maximum profit occurs at the vertex. Using the formula x = -b/(2a) with a = -2 and b = 36 gives x = -36/(2� - -2) = 9, so the maximum profit is achieved when 9 units are produced.
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Study Outcomes

  1. Apply financial algebra formulas to solve real-world financial problems.
  2. Analyze the relationships between variables in financial equations.
  3. Interpret and evaluate interest rate scenarios using algebraic methods.
  4. Synthesize key financial concepts to reinforce problem-solving strategies.
  5. Assess understanding of financial operations through targeted quiz questions.

Financial Algebra Chapter 3 Test Answers Cheat Sheet

  1. Compound Interest Types - Money can grow at different paces depending on how often it's compounded: annually, semiannually, quarterly, monthly, or daily. Imagine your cash doing a daily dance - that's daily compounding piling on interest each day for faster growth. Comparing these schedules helps you pick the best option for loans or investments. Quizgecko Flashcards
  2. Compound Interest Formula - Get cozy with the formula B = P(1 + r/n)^(nt) to forecast your jackpot. Here, P is your principal, r the annual rate, n the number of compounding periods per year, and t the number of years invested. Using this formula lets you map out your savings journey with precision and confidence. Quizgecko Flashcards
  3. APR vs. APY Demystified - APR (Annual Percentage Rate) gives you the basic yearly interest without compounding, while APY (Annual Percentage Yield) factors in how often the interest compounds. Learning the difference means you'll know exactly what you're earning or paying over a year. It's like comparing the speed of two roller coasters - one straight and one with loops! Quizgecko Flashcards
  4. Continuous Compounding - When interest compounds an infinite number of times per year, you use B = P * e^(rt), where e is about 2.71828. It's the theoretical gold standard for maximum growth - your money's dream scenario. Tapping into continuous compounding teaches you the power of limits in real-world finance. Quizgecko Flashcards
  5. Liquidity Basics - Liquidity shows how quickly a firm can pay its short-term bills without breaking a sweat. Key metrics like the current ratio (current assets ÷ current liabilities) and quick ratio ((current assets - inventory) ÷ current liabilities) tell the full story. Higher ratios mean smoother sailing during tight financial seas. Brainscape Flashcards
  6. Statement of Cash Flows - This financial snapshot divides cash movements into operating, investing, and financing activities. It's like reading a company's financial diary to see where cash comes from and where it goes. Mastering this sheet reveals a company's true liquidity and flexibility - no secrets left unrevealed! Slideplayer Cash Flows
  7. DuPont Model Unpacked - Break down Return on Investment (ROI) into profit margin × asset turnover for a deep dive into profitability drivers. This model lets you play detective, spotting which factors - pricing, cost control, or asset use - are superheroes or villains in a company's performance. It's ROI with X‑ray vision! Brainscape Flashcards
  8. Acid‑Test (Quick) Ratio - The acid-test ratio measures a firm's ability to meet immediate liabilities without selling inventory: (current assets - inventory) ÷ current liabilities. It's the strictest liquidity test - no buffering by slow-moving stock. When cash matters most, this ratio is your no-nonsense judge. Brainscape Flashcards
  9. Credit Risk Essentials - Credit risk gauges the chance a borrower might skip out on loan payments. By analyzing credit scores, payment history, and financial strength, lenders set interest rates that match the risk level. Get credit-smart to borrow or lend like a pro! Brainscape Flashcards
  10. Rule of 72 - Want a quick hack to estimate doubling time? Divide 72 by the annual interest rate for the approximate years needed to double your money. At 8% interest, 72 ÷ 8 = 9 years - no calculator wizardry required. It's finance made fun and fast! Brainscape Rule of 72 Flashcards
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